Danone: Oddo still a buyer
(CercleFinance.com) - Danone maintains its "outperform" rating on Danone shares, with an unchanged target price of E64.
After accompanying Danone's top management and investor relations team on a three-day road show in North America, Oddo's teams say they are convinced of the group's potential to refocus its operations and strategy and to rerate the stock (2024 P/E: 14x).
Oddo reports that management has explained very clearly how trust is being rebuilt at all levels: within the Board, between the Board and the Executive Committee, and between the Executive Committee and local management.
Henceforth, the primary aim is to re-establish a virtuous circle of regular profitable growth where the improvement of the grouop's OM is no longer an objective in itself but rather stems from organic growth via innovation, gains in market share, the improvement of its gross margin and the reinvestment of part of its operating leverage, the analyst underlines.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
After accompanying Danone's top management and investor relations team on a three-day road show in North America, Oddo's teams say they are convinced of the group's potential to refocus its operations and strategy and to rerate the stock (2024 P/E: 14x).
Oddo reports that management has explained very clearly how trust is being rebuilt at all levels: within the Board, between the Board and the Executive Committee, and between the Executive Committee and local management.
Henceforth, the primary aim is to re-establish a virtuous circle of regular profitable growth where the improvement of the grouop's OM is no longer an objective in itself but rather stems from organic growth via innovation, gains in market share, the improvement of its gross margin and the reinvestment of part of its operating leverage, the analyst underlines.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.